The invention relates to a point-of-purchase coupon dispenser for dispensing coupons or the like. More particularly, the invention concerns an automatic coupon dispensing machine with means for sensing proximity of a consumer and means for attracting the attention of the consumer.
In recent years, the number and value of grocery coupons distributed has steadily increased yet consumer redemption has steadily decreased.
Consumer behavior and the understanding of it has led to the need for Point-of-Sales marketing. In 1988 the Point-of-Purchasing Advertising Institute surveyed 50,000 consumers in the act of buying and found that:
90% had not looked at promotional circulars PA1 86% had not heard broadcast messages PA1 80% were not redeeming coupons PA1 75% had not checked store ads
Moreover, media used for advertising includes prime time network television. Over the last decade, however, the networks' share of the audience has dropped from 92% to 67% according to A. C. Nielson Co. and the daytime audience has fallen from 78% down to 57%. Yet the cost of 30 seconds of prime time network air time has increased 85%. See, Stalking the New Consumer, Business Week, Aug. 28, 1989.
A study was conducted in 1988 to review the redemption rates of grocery coupons for the year 1987 compared with 1988. See, Progressive Grocer, October 1988. The results of this study are as follows:
______________________________________ Source of Coupons % Redemption % Change ______________________________________ Daily Newspaper 4.0% -25% Sunday Newspaper 4.8% -27% Magazines 5.4% -19% Direct Mail 5.8% -28% Instant On-Pack 31.0% +11% ______________________________________
It can be seen that the instant on-pack coupon (instant redemption coupon attached to a product and redeemed at the check out counter) shows an impressive 31% redemption rate and is the only coupon distribution vehicle that has shown an increase in redemption since 1984. Id.
Consumer research also shows that: "Two thirds of all buying decisions are made in the store." Thus, advertisers should concentrate their efforts on in-store promotion.
Under these conditions, it is apparent that a point-of-sales marketing program holds the greatest redemption percentage of any other coupon distribution method in use today. A clear indication of this is the 300-600% increase in product movement typically experienced on the day of an in-store product demonstration.
Manufacturers and retailers are thus challenged to offer an innovative point-of-sales promotional method that satisfies the stringent convenience requirements of consumers while generating greater sustained levels of product awareness. The Automatic Coupon Machine of the present invention provides the consumer with convenience, value, and time savings.